The funding has been announced as construction begins on the state of the art facility.
Sport England"s "Inspired Facilities" funding is part of the £135 million Places People Play legacy programme that is bringing the magic of a home Olympic and Paralympic Games into communities across the country.
Every sports facility that receives funding will carry the London 2012 Inspire mark - celebrating the link to the Games.
The skate park is being developed as part of the Level Restoration Project but has been funded separately through a combination of council funding, developer contributions and grants, including £50,000 from Veolia Environmental Trust.
Councillor Pete West, chair of the council"s Environment and Sustainability Committee, said: "We are absolutely delighted to have secured the final funding for the skate park. With work starting this week the timing couldn"t be better!"
The skate park is being designed and built by Freestyle Skateparks. The company has been working closely with the Brighton & Hove Skateparks Association to develop an exciting and innovative design which will suit skaters of all ages and abilities.
The facility will be constructed from polished concrete and sunk into the ground to the north of the Rose Walk.
"The skate park will form an integral part of the restoration of the park as well as providing substantially improved facilities for skaters of all ages and abilities," said Cllr West.
"There has been a skate ramp at The Level since the 1970s, so it is part of the park"s heritage, but the old facilities have been in poor condition for many years and needed replacing.
"The sunken nature of the skate park means we will retain the open character of the northern part of The Level and keep its historic layout."
He added that lighting seating, bins, cycle racks and signs will also be installed and a landscaped boundary with insect friendly and drought tolerant planting will be created.
The development of the skate park is part of The Level Restoration Project, which is being carried out by Brighton & Hove City Council. The restoration is funded through a £2.2m Heritage Lottery Fund and Big Lottery Fund grant.
Sport England"s Chair, Richard Lewis, said: "This National Lottery investment will create a lasting sporting legacy for Brighton & Hove.
"This fund has really hit the mark with sports clubs in Sussex. It shows we"re offering the legacy that people want for their local community. For hundreds of clubs and tens of thousands of people, 2013 will be the year their local sports facilities got better."